A Retail Council of Canada survey shows 72.7% of consumers will spend over $50 on back-to-school shopping in 2024, with 85% maintaining or increasing their budget. Retailers face supply chain issues from wildfires and delays, risking shortages. Shoppers are prioritizing value, benefiting discount stores, while full-price retailers struggle. Amazon Prime Day saw over 80% shopper loyalty, and Drewry’s World Container Index dropped 3% to $5,551 USD per 40-ft container.
In-Store Shopping Favoured for Back-to-School 2024: RCC Report
A Retail Council of Canada (RCC) survey shows 72.7% of consumers plan to spend over $50 on back-to-school shopping in 2024, with 85% maintaining or increasing spending. Nearly 75% prefer in-store shopping, reversing the pandemic trend. More shoppers are preparing early, with 37.1% making purchases 2-4 weeks before school starts. The retail sector employs over 2.3 million Canadians and generates more than $91 billion annually.
Canadian Retail Supply Chains at Risk
Canadian retailers are facing supply chain disruptions due to wildfires and delays at the Port of Vancouver, potentially risking inventory shortages for the back-to-school season. Wildfires are impacting rail operations, while delays at ports contribute to the uncertainty. To mitigate these risks, retailers are increasing inventory levels and exploring alternative shipping methods. Experts emphasize the importance of leveraging technology and strong leadership to navigate these challenges and ensure supply chain resilience.
Source: Retail Insider
Winning Over Customers During Inflation: Beyond Just Price
Consumers are prioritizing value and quality over price. Retailers emphasizing high quality, such as dollar stores and off-price retailers, are thriving, while those selling full-price items struggle. Brands like Abercrombie & Fitch and Warby Parker are succeeding by focusing on quality and value. Delivering perceived value is crucial for attracting and retaining customers.
Source: Retail Dive
Amazon Prime Day Tops Summer Sales for Loyalty and Growth
Amazon Prime Day led in customer loyalty this summer, with over 80% of shoppers buying only from Amazon, according to Earnest Analytics. Amazon reached a record $14.2 billion in online spending during the event. Meanwhile, TikTok Shop’s Deals For You Days saw a notable 81% increase in online sales compared to January, gaining a significant share of U.S. e-commerce.
Source: Retail Dive
Ocean Container Rates Decline for Third Week
Drewry’s World Container Index has dropped 3% to $5,551 USD per 40-ft container as rates continue to decline. The current rate is 47% below the pandemic peak but remains significantly higher than pre-pandemic levels. Some experts think shipping disruptions may stabilize rates in the near future.
Source: Inside Logistics
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